NDEJJE UNIVERSITY
TAXATION COURSEWORK DEADLINE 7th APRIL, 2024
Instructions:
Attempt all the questions
For long distance it’s individual for day main and Kampala it’s in group of 5 people. Ensure to
indicate each person’s contribution
Question One
a) Explain the circumstances under which a taxpayer is allowed to make adjustments to a tax
invoice
b) The following information was given by Nakiyingi Georgina about her employment income
for the year 2023
Shs '000’
Monthly Salary 3,840,000
Accommodation 600,000
Police Body Guards 200,000
Motor Vehicle 1,000,000
House Maid 480,000
Shamba Boy 420,000
Medical Insurance 500,000
Uganda Law Society 200,000
Club Membership 560,000
Clothing allowance 620,000
Travel to Florida 3,000,000
Council Meeting 800,000
Lieu of Leave 752,000
Required.
c) Determine the exempted and not exempted item and prepare Nakiyingi Georgina
employment income and tax liability for the year 2023
d) Benefits that are not included in employment income:
e) Outline the primary and subsidiary Legislations followed by URA in administering Tax laws
in Uganda
Question Two
a) Short notes on the following
(i) Exempt supply
(ii) Scientific Research Expenditure
(iii) Initial Allowance
(iv) Motor Vehicle benefit
(v) Short term resident of Uganda
(vi) Tax Return
b) Distinction between an Objection and an Appeal
c) Any four offences covered under the Tax Procedures Code Act (Section 54 – 64 of the TPC)
d) The Objections and Appeals process in relation to Income tax assessment
Question Three
Virtuous Hygiene Limited (VHL) is a cleaning and waste management company operating in
Kampala with multiple cleaning contracts across the country. The following are VHL’s
transactions recorded for the month of May 2023.
Sales:
1. VHL supplied 10 cartoons of hand sanitizers to a customer in Lira City at Shs 2.4 million
for the supply and Shs 340,000 for transportation.
2. Invoiced of Shs 6.2 million for cleaning services at one of its contract sites.
3. Due to changes in cleaning requirements, VHL re-negotiated all its annual cleaning
contracts upwards raising an additional income of Shs 13.5 million per month.
4. VHL also supplied 5 high-pressure water machines at a total value of Shs 8 million.
5. Sold polythene bags for garbage collection to retailers in Kampala worth Shs 7.3 million.
These supplies are on credit payable within 30 days of delivery.
6. VHL supplied scaffolds to other cleaning companies in Kabale, Mbarara, and Jinja
valued at Shs 22 million.
7. During the month, VHL also installed hands-free infrared soap dispensers in 6 sites at a
total cost of Shs 1.2 million.
Purchases:
1. VHL procured 25 cartoons of disinfectant for their cleaning services at a cost of Shs 6
million.
2. Paid Shs 2.5 million for stationary to a supplier who is not yet registered to use electronic
invoicing system.
3. VHL hired specialized cleaning equipment from a third-party provider and paid Shs 3.9
million for the rental.
4. VHL paid wages to cleaners of Shs 13.2 million.
5. Paid telephone bills of Shs 315,000.
6. Received an invoice from a security service provider of Shs 580,000.
Additional Information:
All sales and purchases are VAT inclusive where applicable
Required:
(a) Compute the VAT payable/claimable by VHL for the month of May 2023.
(b) Explain the circumstances under which a taxpayer registration to VAT may be cancelled.
THE FEAR OF GOD IS BEGINNING OF WISDOM
